Ducommun Incorporated Reports Fourth Quarter 2024 Results

Core Insights - Ducommun Incorporated achieved record revenue of approximately $787 million for the full year 2024, marking a 4% increase from 2023, with quarterly revenue reaching approximately $197 million in Q4 2024, a 2.6% increase year-over-year [3][5][9] - The company reported a gross margin of 25.1% for the full year, up 350 basis points from the previous year, and 23.5% for Q4, an increase of 180 basis points year-over-year [3][9][7] - Ducommun's net income for Q4 2024 was $6.8 million, or $0.45 per diluted share, reflecting a 33% increase compared to $5.1 million, or $0.34 per diluted share, in Q4 2023 [6][9][31] Financial Performance - The company’s net revenue for Q4 2024 was $197.3 million, compared to $192.2 million in Q4 2023, driven by growth in military and space markets [5][10] - Gross profit for Q4 2024 was $46.4 million, representing 23.5% of revenue, up from $41.7 million or 21.7% in Q4 2023 [7][31] - Operating income for Q4 2024 was $10.4 million, or 5.3% of revenue, compared to $8.9 million, or 4.6% of revenue, in the same period last year [8][31] Business Segments - Electronic Systems segment reported net revenue of $107 million in Q4 2024, essentially flat compared to $106.7 million in Q4 2023, while Structural Systems segment revenue increased to $90.3 million from $85.6 million [14][16] - Operating income for Electronic Systems in Q4 2024 was $19 million, or 17.7% of revenue, compared to $9.8 million, or 9.2% of revenue, in Q4 2023 [15] - Structural Systems operating income decreased to $3.2 million, or 3.6% of revenue, from $6.6 million, or 7.7% of revenue, in the prior year due to unfavorable product mix and higher restructuring charges [16] Backlog and Future Outlook - Ducommun ended 2024 with a strong backlog exceeding $1.0 billion, with military and space backlog increasing by nearly $100 million to $625 million from 2023 [4][13] - The company is optimistic about growth in 2025, anticipating stability and production growth from Boeing and expected growth at Airbus, which would positively impact its commercial aerospace business [4][3]